All yields in this problem are quoted as semi-annually compounded aprs. the following coupon paying bonds are being traded in the market: − 4% coupon-paying bond with maturity of 6 months and semi-annual coupons. its yield to maturity is 2%. − 6% coupon-paying bond with maturity of 1 year and semi-annual coupons. its yield to maturity is 2.5%. − 5% coupon-paying bond with maturity of 18 months and annual coupons. its yield to maturity is 3%. − a zero-coupon bond with maturity of 2 years. its yield to maturity is 4%. a) what are the zero-coupon bond prices with face values of $100 and maturities 0.5, 1, 1.5, and 2 years respectively?

Jose recently died with a probate estate of $900,000. he was predeceased by his wife, guadalupe, and his daughter, lucy. he has two surviving children, pete and fred. jose was also survived by eight grandchildren, pete’s three children, naomi, daniel, nick; fred’s three children, heather, chris and steve; and lucy’s two children, david and rachel. jose’s will states the following “i leave everything to my three children. if any of my children shall predecease me then i leave their share to their heirs, per stirpes.” which of the following statements is correct? (a) under jose’s will rachel will receive $150,000. (b) under jose’s will chris will receive $150,000. (c) under jose’s will nick will receive $100,000. (d) under jose’s will pete will receive $200,000.